Use it or lose it is the fifth and final human problem that Nelson discusses in his book. Nelson states that this issue closely mirrors the arrival syndrome.
Use it or lose it relates to the common tendency for humans to revert back into their old ways of doing things or thinking. To overcome this, we need to regularly put into practice what we have learned and fully understand why we are doing it that way.
Use it or lose it in real life.
If you have ever learned a new language, it takes countless hours to learn the language and takes constant practice to perfect it. Then you must use the language somewhat regularly or you can forget what you have learned and it will start to escape your mind.
I’m thinking of how little I remember in 2 years of Spanish lessons right now..
This is the same thing with the IBC. As users of the IBC, it is important that we continually educate ourselves and use the concept in everyday life so that we never fall into our old financial habits.
Nelson said that what he was teaching (IBC) to people was equivalent to teaching that the world is round, when most folks think that it is flat. Explaining that the Earth is round is not a hard thing to do in general, but it is very hard to explain to people who believe that it is flat.
It can be very difficult for IBC Practitioners to teach the concept to those who think that 401ks, IRAs, and savings accounts with traditional banks are without a doubt the best place to store money, since that’s all they’ve likely been told their entire life. It also doesn’t help that radio show hosts (trying to give financial education) go on misleading rants stating that whole life insurance is the absolute worst place to put money.
If you hear something enough times you eventually believe it to be truth.
The Use It or Lose It principle also applies to how we use money.
People think that paying with cash is the absolute best way to buy things without thinking of the lost opportunity cost. If you have $40,000 in your account and you buy a new vehicle for $30,000, now your account balance drops and you can only earn interest on the remaining $10,000. Therefore, by paying $30,000 in cash you gave up the opportunity to ever earn interest on that $30,000 again. If you get a loan for $30,000 you now allow yourself to earn interest on the total $40,000 in your account, but now you are paying interest to the lender on the money he loaned you.
As Nelson said, “you either pay interest to someone else or you give up interest you could have earned.”
The good news is that with the Infinite Banking Concept we can recapture this opportunity cost. Book an IBC discovery call today to find out how.